New Shale Wars: OPEC vs US Frackers

While OPEC—and in particular Saudi Arabia—bites the bullet and concedes to these oil production cuts, producers around the world stand to benefit from a bump in prices. Here in the U.S., this should mean a corresponding rise in output as more shale plays become profitable. That would work to offset the clamp on global supply OPEC is trying to accomplish, and therefore blunt the effect of this cut while simultaneously helping American producers gain a greater share of the global market. This is why Riyadh has been so loathe to agree to a cut. The extent to which U.S. shale firms are able to capitalize on rising prices will determine how successful this reluctant change in the petro-states’ tactics will be. —The American Interest, 30 November 2016

So far it has cost Saudi Arabia something like $200 billion to undertake one of the most expensive experiments of all time. The Saudi government has been draining its massive $2 trillion sovereign wealth fund to cover revenues lost from the petroleum price collapse over the past couple of years. What we’re witnessing is a two-part test. The first question is how much damage low oil prices will have caused America’s shale industry. Then the second and far more critical part of the test: as oil prices rise, will the shale industry limp or roar back? If it roars back, high oil prices are history. Odds are now that in 2017 we will witness — along with the oil princes of Arabia — the outcome. However it goes, the economic and geopolitical implications are enormous. And the outcome has more to do with technology than with politics. –Mark P Mills, Forbes, 30 November 2016

For decades, America depended on the world for energy. Today, it’s becoming a global supplier of oil and natural gas in its own right. This year, for the first time ever, the U.S. started turning gas from prolific shale formations into liquefied natural gas (LNG) and sending it overseas. In 2017, the country may be exporting more of the heating fuel than it imports for the first year since the 1950s. The shale revolution has undoubtedly put America on a path to becoming a global gas powerhouse. The ability to find more buyers as U.S. capacity increases at a competitive price will dictate how dominant the U.S. will become as an energy power in 2017 and beyond. –Dave Merrill and Christine Buurma, Bloomberg, 30 November 2016

America’s uncertain stance toward global warming under the coming administration of Donald J. Trump has given China a leading role (sic!) in the fight against climate change. But there is a problem: Even as it does so, China is scrambling to mine and burn more coal. A lack of stockpiles and worries about electricity blackouts are spurring Chinese officials to reverse curbs that once helped reduce coal production. Mines are reopening. Miners are being lured back with fatter paychecks. “I get a kick out of people in the West who think China is decarbonizing, because I see no sign of it whatsoever,” said Brock Silvers, a Shanghai banker who has previously served on the boards of two Chinese coal companies. –Keith Bradshernov, The New York Times, 29 November 2016

The global battle against climate change has passed a historic turning point with China’s huge coal burning finally having peaked, according to senior economists. China is the world’s biggest polluter and more than tripled its coal burning from 2000 to 2013, emitting billions of tonnes of climate-warming carbon dioxide. But its coal consumption peaked in 2014, much earlier than expected, and then began falling. “I think it is a real turning point,” said Lord Nicholas Stern, an eminent climate economist at the London School of Economics, who wrote the analysis with colleagues from Tsinghua University in Beijing. “I think historians really will see [the coal peak of] 2014 as a very important event in the history of the climate and economy of the world.” –Damian Carrington, The Guardian 25 July 2016

In the run-up to next year’s general elections, Germany’s Christian Democrats (CDU) are considering a rapid end to subsides for renewable energies. Wind, solar and biogas plants would in future have to financially “stand on their own feet,” according to a draft discussion paper by the Federal Committee for Finance, Economy and Energy, seen by the German magazine Der SPIEGEL. –Stefan Schultz, Der Spiegel, 29 November 2016

Renewable energy should no longer have top priority in Europe’s electricity grid, the E.U. energy commissioner told Handelsblatt in an exclusive interview. Miguel Arias Canete said renewable energy should have the right of way over other forms of energy only when the electricity grid is maxed out. “But when it comes to simply feeding in electricity under normal market conditions, energy from already existing plants and small projects, such as solar panels and private homes, should have priority,” Mr. Canete said. E.U. member states should also be allowed to build energy reserves from coal and gas plants under certain conditions, Mr. Canete said. —Handelsblatt Global, 30 November 2016

Not a single political party in the Netherlands managed to go far enough in their election promises on the environment to reach the climate target set in the Paris Agreement, the Volkskrant reports based on its own analysis of the election campaigns of the Dutch parties. Even where programs embrace the Paris targets, their intentions fall short, according to the newspaper. –Janene Pieters, NL Times, 29 November 2016

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Recent Comments

Amber

One of the most significant outcomes of the USA election is the public awakening to the utter contempt main street media holds them . Preachy condescending Liberals
pushing for the most part Democrat ideology while shutting out different values and political priorities . Telling the people what to think instead of listening . The Green Party garnering a whopping 1 % of the vote and was supposed to be the champion of what the President claims is the number one threat to the world . Global Warming rebranded Climate Change . Apparently people in the rust belt and over 30 other States disagreed with that as a priority .
The lazy media played along and sold scary climate stories they were spoon fed and in some cases refused to provide any balance to the BS they are spoon fed and have been spewing for years .
When their party lost they were so stunned all they could play was the race card and are still in denial holding out for hopeless recounts or conspiracy theories of Russian espionage and hacking .
The public has now been put back in control so if some clown weather women wants to pitch nonsense the public shifts to more objective information sources. Ones that aren’t the propaganda or fake news tool for a political party .
Universities that are now full on incubators for a one sided left wing agenda are really ripping those kids off but worst of all those like Colorado University have faculty openly saying they will not discuss opposing climate views . Education to Propaganda is a fine line . Colorado crossed it . The LA times crossed it . The Guardian , New York Times …. well what do you expect ?
Peoples actions demonstrated the jig is up . Short those media stocks they are going down .

Amber

If left wing pinko Saunders doesn’t like him he sounds like he has potential .
He looks like a guy with a bit of backbone and won’t be bullied by the Demo rat
whiners who have infiltrated the EPA .
Good luck Mr. Pruitt . …. hire security . When the looney tunes get desperate( and they are ) they go into ugly mode . Taking apart their $Trillion dollar con game is going to get them down right belligerent but who cares ? They did get about 1 % of the vote
after all . In other words the science fiction is settled in the minds of voters by about
99 % . The debate is over in their hot air world .
Drain away Mr. Pruitt the public backs you despite the shrill sound of whiners who just had their piggy bank broken .

Amber

The NASA data manipulators collectively don’t have an IQ over 38 . Bullshit merchants about to be out on their ass . Maybe Britain would like to hire NASA rejects .
Where oh where are Dicaprio and Gore going to get their alarmist propaganda ?
When is the much vaunted IPCC report coming out ? That’s right NEVER .
The jig is up they were played as useful idiots and are no longer required .
Did the IPCC hot pants smut writer ever beat those sexual harassment allegations ? Quality right through the organization .

Amber

Why would virtually no change to Antarctic ice in over 100 years be a surprise at all .
Whether it’s minus – 60 or minus – 58 certainly we know it is fricking cold and it is not about to thaw . Throw a few volcanos open below the surface and a part of it might
but if that is considered caused by climate change the science fiction is bigger than
we know .
The question is how much will the Antarctic grow by over the next 1000 years ?

Amirlach

JayPee

I’m willing to consider your argument, but I’m disturbed of your willing to give credence to the unproven and unfoundedly assumed presumption that CO2, CH4, and any other gasses that the extremist left hates are upon their dictum alone the mythical GREENHOUSE GASSES as they define them to be.

I ask you not to buy into their argument without the proof that they have never had.
They have always had conjecture, lies and hysteria and even a low percentage of consensus ( as if that means anything ).
But they have NEVER had proof of their mythical GREENHOUSE EFFECT ( as defined by the extremist left ).